Wiley Practitioner's Guide to GAAS 2022

46AU-C 920 Letters for Underwriters and Certain Other Requesting Parties

• Scope
• Definitions of Terms
• Objectives of AU-C Section 920
• Overview
• Requirements: General
  • Engagement Acceptance
  • Representation Letter
  • Reports to Other Parties
  • Communications with Underwriter
  • Draft Comfort Letter
  • Auditor of the Group Financial Statements
  • Shelf Registration
  • Issuance of Letters or Reports under Other Standards
• Requirements: Format and Contents of Comfort Letters
  • Dating of Comfort Letter
  • Addressee
  • Introductory Paragraph
  • Independence
  • Compliance as to Form with SEC Requirements
• Requirements: Commenting in a Comfort Letter on Information Other Than Audited Financial Statements
  • General
  • Knowledge of Internal Control
• Requirements: Other Matters
  • Concluding Paragraph
  • Disclosure of Subsequently Discovered Matters
• AU-C 920 Illustrations

SCOPE

Engagements to issue comfort letters for underwriters and certain other requesting parties in connection with financial statements and financial statement schedules contained in registration statements filed with the Securities and Exchange Commission (SEC) under the Securities Act of 1933 (the Act) and certain other securities offerings. (See “Overview” section for additional discussion.) (AU-C 920.01)

DEFINITIONS OF TERMS

Source: AU-C 920.07. For definitions of these terms associated with this Section, see Appendix A, “Definitions of Terms”: Capsule financial information, Change period, Closing date, Comfort letter, Comparison date and comparison ...